Amazon and iRobot have altered the terms of their merger agreement, with the tech giant now paying $51.75 per share, down from the initially agreed $61.00 per share, according to a joint statement released yesterday.
Concurrently, iRobot, a player in the consumer robot space, has entered a $200 million financing agreement, aimed at funding ongoing operations. The revised share price from Amazon is expected to be significantly offset by iRobot’s increase in net debt under this new facility.
Colin Angle, Chairman and CEO of iRobot, acknowledged the change in the agreement, noting, “We’ve reached an amended agreement with Amazon that reflects the incurrence of iRobot’s new debt.” He went on to state that the new financing is expected to be sufficient to support iRobot’s operations in a “hyper-competitive environment”, meet liquidity requirements, and help to clear existing debt.
Dave Limp, SVP of Amazon Devices, stated, “We are pleased to support iRobot in this way so they can continue inventing and delivering for customers while our proposed acquisition awaits regulatory approval.”
This development follows Amazon’s original announcement in August 2022 that it had plans to acquire iRobot, a merger that is still awaiting regulatory approval. Both Amazon and iRobot reiterated their commitment to working with regulators during the review process.